Tiny loans to tide you over till payday. FROM being called ‘worse than loan sharks,’ to more neutral reviews saying that it really is nearly impossible getting that loan through the site, UangTeman is surviving, as well as, apparently thriving.

Tiny loans to tide you over till payday. FROM being called ‘worse than loan sharks,’ to more neutral reviews saying that it really is nearly impossible getting that loan through the site, UangTeman is surviving, as well as, apparently thriving.

FROM being called ‘worse than loan sharks,’ to more basic reviews stating that it really is nearly impossible to have a loan through the web web site, UangTeman is surviving, and indeed, apparently thriving.

Speaking recently to Digital Information Asia (DNA) in Jakarta, its cofounder and ceo Aidil Zulkifli (pic above) admits as a free promotional tool that he struggled with the bad publicity at first, but managed to use it.

“We are actually nine months old, operating fast and doing pretty well. As being a startup, you shouldn't be scared of bad press; you merely should find out just how to handle it,” he claims.

UangTeman, or ‘Friend’s Money’ in English, began operations in 2015, and has been growing 20% to 25% month-on- month since, according to Aidil april.

The economic services technology (fintech) startup dispenses payday advances to individuals in need of assistance: tiny, short-term loans to simply help borrowers endure with regards to their daily needs until their next paycheque.

Borrowers usually takes as much as a optimum of Rp2 million (US$148.60) and at the least Rp1 million (US$74.20) the very first time, but they are charged a 1% rate of interest a day for the following 18 to 25 times.

Even though many begin to see the 1% daily rate of interest as an excessive amount of, Aidil contends that this is actually the only fee that clients need certainly to deal with – there are no management or processing charges.

He keeps the attention price is “relatively okay” compared utilizing the danger the faces that are startup day.

“We aren't a bank; we usually do not gather cash from people. The income we lend to the customers originates from our personal ‘friendly’ pockets,” declares the Singaporean-born previous lawyer.

He additionally stresses that UangTeman just isn't contending using the banks, but with the mortgage sharks and lenders that are informal the marketplace.

“The loan roof will increase to Rp3.5 million (US$260) additionally the rate of interest is certainly going down once the debtor shows credit that is good and it has lent once or twice currently.

“The most of individuals in Indonesia are surviving from paycheque to paycheque; when they require extra cash, UangTeman are going to be here for them, like a pal.

“It is about making a large effect – it is about building a company where from the one hand, you are able to cash, yet on the other side, you may make a confident effect on society,” he adds.


the primary challenge for almost any financing company is an extensive history check for the prospective debtor. UangTeman will depend on technology because of this type or style of research, in accordance with Aidil.

“We have actually our personal technology and algorithms that will perform some initial back ground check utilizing lots of data points,” he adds.

While stressing that security and privacy are crucial for the company, he contends that keeping a level that is low of loans may be the objective. As well as in this, UangTeman relies greatly from the technology it offers built.

Clients will discover down whether their application is authorized or otherwise not immediately. For those who are authorized, UangTeman’s operations group shall continue steadily to monitor to make certain there's no fraudulence.

“Once everything is authorized, clients will get the cash in their bank records in three to twenty four hours,” Aidil promises.

Although the loan quantity will not seem like much, it appears to suit the requirements of the goal market UangTeman is serving.

From the survey that is internal% of their customers are micro business people; 25% utilize the loan for academic function; and around 20% utilize it to cover medical center and medical bills, based on Aidil.

Back once again to fundamentals

The theory behind UangTeman would be to provide under-banked individuals use of lending options, particularly to little and short-term loans that can provide their fundamental and needs that are daily.

“The target audience is actually individuals who never very own charge cards. They usually have fundamental bank records, however the banking institutions aren't lending them cash since they carry a high-risk,” says Aidil.

A current credit history on MSMEs (micro, little and medium enterprises) by industry regulator Bank Indonesia revealed that MSME loans take into account 18.5percent of banking institutions’ total credit circulation.

But associated with the total that would go to MSMEs, medium loans make-up 48.1%, little loans have 28.5% share, payday loans in Oklahoma and micro loans compensate 23.5%. By Bank Indonesia’s meaning, a micro loan is just one without any practical minimum as much as no more than Rp50 million (US$3,718).

Sustainable business structure

Although UangTeman has guaranteed an undisclosed round that is seed-funding investors offering Alpha JWC Ventures, Aidil claims the company model is sustainable and that the startup might survive without relying greatly on such outside assets.

However the seed investment could be needed seriously to measure its operations and achieve more towns and suburbs when you look at the national nation, also to start a minumum of one contact centre workplace in each town it operates in.

“We have now been money that is making Day One, with this very first customers, and I also think this is certainly also just exactly just what attracted our investors,” Aidil claims.

He additionally contends that the investors had been keen to spend in UangTeman because he could be perhaps perhaps not through the services that are financial.

You must come from the outside, I believe“If you want to change and disrupt the financial services industry.

“That means, you'll be able to see various ways to supply the exact same services and products; interruption can occur as soon as we cross each industry that is other’s” he adds.

Aidil says that UangTeman may likely pursue Series-A money year that is early next claiming it currently has investors prepared.

The master plan now could be to teach industry, particularly individuals from residential district areas, along with to start a contact centre workplace in West Java.

Presently UangTeman runs in Jakarta, Bogor, Depok, Tangerang and Bekasi (Jabodetabek), Yogyakarta, Solo, Magelang and Klaten.

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